‘There is a treaty!’ – Angela Merkel can finally form a government, as German parties reach coalition deal

Top Social Democrat (SPD) negotiators said on Wednesday via social media that they had reached a deal with German Chancellor Angela Merkel’s conservatives on forming a new coalition government.

In a message posted alongside a photo of SPD leader Martin Schulz and other SPD negotiators smiling, the SPD negotiators wrote: “Tired but happy. There is a treaty! Finally. Now the final details are being worked into the text. Then the 35 SPD negotiators will assess it.”

Public broadcaster ARD said the final disputes had centred around “ministry remits and personnel questions”.

The breakthrough will come as a relief to Germany’s EU partners as the bloc faces tough negotiations on migration and Brexit.

Mrs Merkel, Europe’s most experienced leader, has seen her standing at home and abroad weakened by the longest stretch of coalition-building in the country’s postwar history.

Angela Merkel arrives for talks on Tuesday, February 6Credit:
DPA

But before she can be sworn in, a final hurdle looms: the hard-fought pact between her CDU/CSU bloc and the Social Democratic Party must still be approved by the SPD’s sceptical rank-and-file .

The agreement for a renewed “grand coalition” comes after days of marathon talks in which negotiators from all three parties haggled over everything from foreign policy to labour issues and healthcare.

SPD holds the keys

Germany has been stuck in political limbo since September’s inconclusive general election saw mainstream parties bleed support to the far-right AfD, which tapped into anger over Mrs Merkel’s liberal refugee policy.

Mrs Merkel, in power for over 12 years, at first tried to cobble together a novel three-way coalition with the Greens and the liberal Free Democrats, but those efforts collapsed in November.

Faced with snap elections that could further boost the AfD or the prospect of heading an unstable minority government, she opted to woo back the SPD – her junior partner for two of her three terms since 2005.

SPD leader Martin Schulz then abandoned his post-election vow to renew the party in opposition – a U-turn that angered many.

Martin Schulz, leader of Germany’s social democratic SPD party, arrives for further talks to form a new government in Berlin on February 6Credit:
DPA

Mrs Merkel’s fate now lies in the hands of the SPD, as Mr Schulz has promised to give his party’s 460,000 members the final say on whether to accept the coalition pact.

Observers expect the referendum to be tight, with the SPD’s left and youth wings fiercely opposed to another four years governing in Mrs Merkel’s shadow.

The party’s fiery youth chief Kevin Kuehnert has led a campaign against another “GroKo”, as the grand coalition is known.

The referendum will be held by postal ballot, with the result expected to be announced in early March.

A green light could see a new Merkel-led government in place by the end of next month.

A thumbs-down could spell disaster for Mrs Merkel and Mr Schulz, whose political lives hang in the balance, and see the country headed for fresh elections.

Hard-won concessions

With so much at stake, Mr Schulz was determined to extract as many concessions as possible from the tortuous coalition talks to win over sceptics.

While details of the final agreement have yet to be released, former European Parliament chief Schulz has put a fairer Europe at the heart of his efforts, insisting that Berlin must join French President Emmanuel Macron’s push to deepen eurozone integration.

In a draft version of the coalition pact seen by AFP, the parties agreed to support Mr Macron’s reform drive and tentatively backed his idea of a eurozone investment budget.

On the hot-button topic of migration, the two camps said they would aim to limit the annual intake to 180,000-220,000 people, a key CSU demand.

It was not immediately clear how the final sticking points in the negotiations were resolved, such as the SPD’s insistence on limiting short-term contracts and overhauling the two-tier healthcare system.

On defence spending too, both sides remained at odds as the finish line neared with the conservatives more open than the SPD to raising military spending closer to NATO targets, as pushed for by US President Donald Trump.

But the protracted haggling has left its scars, and surveys suggest both camps have much to fear from fresh elections in case of a “no” vote from SPD members.

A recent Insa poll found that support for the CDU/CSU had fallen from 33 to 30.5 percent, while the SPD slipped from September’s historic low of 20.5 percent to 17 percent.